Slide 1: Results for the 52 weeks to 27 June 2015
For personal use only Results for the 52 weeks to 27 June 2015 Peter Birtles, Managing Director David Burns, Chief Financial Officer 21st August 2015
Slide 2: Contents
For personal use only Contents 2014/15 Financial Results 2015/16 Outlook Group Strategy 2
Slide 3: Group Highlights
Group Highlights 3 • Group Total Segment Sales up by 7.1% Sales LFL % 14/15 13/14 12/13 11/12 10/11 For personal use only SCA 2.2% 2.4% 5.0% 3.9% 4.8% • Normalised NPAT down by 5.3% Leisure* (0.6%) (0.8%) 2.9% 6.5% 4.6% • NPAT attributable to members down by 25.2% Sports^ 6.6% 2.6% 8.0% 5.8% - • Ope
Slide 4: Performance Trends
Performance Trends 4 Reported Sales ($m) Reported Total Segment For personal use only EBIT ($m) 2,239 182.6 2,020 2,112 172.3 170.2 1,654 140.7 1,092 87.5 938 829 65.8 625 715 55.1 38.1 45.7 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun
Slide 5: Group Results
Group Results 5 2014/15 Change For personal use only • New store and like for like sales growth has been solid $m on pcp in both Auto and Sports divisions Total Revenue 2,238.7 7.1% • Leisure division has delivered strong second half sales like for like growth after soft first half. Gross margin per
Slide 6: Segment Results
Segment Results 6 2014/15 2013/14 For personal use only $m Sales Segment Sales Segment EBIT EBIT Auto Retailing Segment 854.3 96.0 818.2 94.5 Leisure Retailing Segment 543.2 32.3 530.5 38.2 Sports Retailing Segment 835.0 65.6 734.0 62.8 Group & Unallocated 6.2 (23.7) 7.4 (9.1) Total Segment Result 2
Slide 7: Auto Retailing
Auto Retailing 7 2014/15 change on For personal use only • Divisional result includes Supercheap Auto and Auto Trade Direct (not material at this stage) $m pcp • Strong sales growth from 9 new stores and like for like Sales 854.3 4.4% sales growth momentum of 2.2% on pcp • Sales growth was delivered
Slide 8: Leisure Retailing
Leisure Retailing 8 • Like for like sales results in the second half has seen 2014/15 change on For personal use only a recovery of positive sales momentum in BCF after pcp* negative growth in half one $m • Ray’s has experienced strong like for like sales Sales 543.2 2.4% growth in the second half d
Slide 9: Sports Retailing
Sports Retailing 9 2014/15 change on For personal use only • Sales growth in Rebel and Amart Sports has been pcp strong with robust like for like growth supported by $m new store sales • Lower gross margin reflects strong growth in lower Rebel and Amart margin categories (e.g. fitness technology), p
Slide 10: Group & Unallocated
Group & Unallocated 10 • Group and Unallocated includes SRG Commercial, 2014/15 change on For personal use only consolidated investment in Oceania Bicycles, Fixed pcp Price Car Service and Group costs not allocated to $m segments Sales 6.2 -16.2% • Unallocated Group costs include public company $m a
Slide 11: Group Cash Flow
Group Cash Flow 11 Jun 15 Jun 14 For personal use only • Strong underlying operating cash flow performance has funded investment in new stores $m $m and multi-channel development program Operating cash flow 196.2 186.9 • New and refurbished store investment of $53.0m (pre store set up investment) is
Slide 12: Group Balance Sheet
Group Balance Sheet 12 Jun 15 Jun 14 For personal use only • SCA average inventory per store is 2% higher than pcp due to the impact of increased imported $m $m product and falling AUD offset by inventory improvement initiatives Inventory • Leisure average inventory per store is 4% higher - Auto Ret
Slide 13: Returns & Capital Ratios
For personal use only Returns & Capital Ratios 13 • EPS ratio decline is consistent with profit performance 2015 2014 • The Group undertook a modification of its debt EPS – Continuing operations 49.4c 57.0c facility in the year. The facility limit has been increased to $635m and extended a further 1
Slide 14: Segment Note 2014/15
Segment Note 2014/15 Total. Inter-segment. continuing. eliminations/. For personal use only For the period ended 27 June 2015 Auto Leisure. Sports. operations. unallocated. Consolidated. $m $m. $m. $m. $m $m. Segment Revenue and Other Income External segment revenue 854.3 543.2 835.0 2,232.5 8.2 2,2
Slide 15: Segment Note 2013/14
Segment Note 2013/14 Total. Inter-segment. For personal use only continuing. eliminations/. For the period ended 28 June 2014 Auto Leisure. Sports. operations. unallocated. Consolidated. $m $m. $m. $m. $m $m. Segment Revenue and Other Income External segment revenue 818.2 530.5 734.0 2,082.7 8.5 2,0
Slide 16: Contents
For personal use only Contents 2014/15 Financial Results 2015/16 Outlook Group Strategy 16
Slide 17: Looking Forward
Looking Forward Auto Retailing • LFL sales growth in the first 7 weeks of 15/16 circa 2.5% For personal use only • Gross margin tracking up on PCP in the first 7 weeks • SCA store development: plan to open 15 new stores, 65 refurbishments, extensions and relocations Leisure Retailing • LFL sales gro
Slide 18: Contents
For personal use only Contents 2014/15 Financial Results 2015/16 Outlook Group Strategy 18
Slide 19: Our Strategic Roadmap
Our Strategic Roadmap Our INSPIRING YOU TO LIVE YOUR PASSION Vision For personal use only Our TO PROVIDE SOLUTIONS AND ENGAGING EXPERIENCES THAT ENABLE OUR Purpose CUSTOMERS TO MAKE THE MOST OF THEIR LEISURE TIME To achieve the To achieve higher To provide returns Our To be one of the 5 highest Team
Slide 20: Our Strategic Programs
Our Strategic Programs Building Developing For personal use only Understanding Engaging and Leading Optimising Engaging and Our Strategic Innovative our inspiring our Private & our Supply developing Pillars and Relevant Customers Customers Exclusive Chain our Team Solutions Brands Business Agility D
Slide 21: Auto Retailing – Key Strategic Initiatives
Auto Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (350 STORES) (> 3% PA) (12%) (> 40%) Understanding our • SCA club + membership now at over 1.3 million - 1.1 million active Customers • Understanding and meeting
Slide 22: Leisure Retailing – Key Strategic Initiatives
Leisure Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (220 STORES) (> 3% PA) (11%) (> 30%) Understanding our • BCF / Rays club membership now at 3.0 million - 1.4 million active Customers • Developing Rays Outdoor
Slide 23: Sports Retailing – Key Strategic Initiatives
Sports Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (250 STORES) (> 4% PA) (11%) (> 21%) Understanding our • Rebel / Amart club membership now at 2.6 million – 1.4 million active Customers • Use of customer analy
Slide 24: Commercial
Commercial (5 year goal) For personal use only B2B INTERFACE SALES TARGET PRE TAX $50M + ROC (> 21%) Wholesale • Opportunities across all Group categories • Centred around Group’s private label products Insurance • $15m opportunity • Providing gift cards or replacement products to major insurers to
Slide 25: Supply Chain and Inventory Management
Supply Chain and Inventory Management (3 year goal) For personal use only SUPPLY CHAIN STOCK TURNS IN STOCK COSTS REDUCED OF >3 ACROSS LEVELS > BY 1% OF SALES THE GROUP 96.5% Inventory Management • Bedding down of JDA systems in Auto and Leisure and implementation of JDA into Sports • Clear, time-ph
Slide 26: Engaging and Developing our Team
Engaging and Developing our Team (5 year goal) For personal use only ENGAGEMENT RETENTION SUCCESSION SAFETY ATTRACTION DIVERSITY >70% > 75% > 70% 30% pa < 4 weeks > 40% Engaging and Developing • Cultural Paradigm shifts – Customer Centricity, Collaboration, Change our Team Leadership • Attraction: G
Slide 27: Delivering our Financial Targets
Delivering our Financial Targets To deliver compound To grow return on capital For personal use only annual growth in EPS of to greater than 15% greater than 15% Opportunities Challenges • Growing store numbers to over 800 • Lower domestic growth • Delivering LFL growth of 3% to 4% • Consumer confid